The trailing twelve month average market capitalization of the U.S. new home sales market peaked in March 2020 before beginning to shrink in April 2020. That timing coincides with the arrival of the coronavirus pandemic in March, which prompted state and local government officials in much of the country to order residents to stay at home through all of April, hampering transactions in the industry even though it was declared "essential" across most jurisdictions.
Still, many of the new home sales transactions that closed in April were already in the pipeline, so to speak, coming out of March 2020, so much of the impact of the coronavirus recession on the new home market likely remains in the future. The following chart shows the history of the trailing year average market capitalization of new home sales from January 1976 through April 2020:
The trailing twelve month average median new home sale price in the U.S dipped in April 2020, reversing what had been a rising trend over the previous six months. The following chart shows the trailing year average median new home sale price versus median household income from December 2000 through April 2020:
References
U.S. Census Bureau. Monthly New Residential Sales, April 2020. [PDF Document]. Accessed 7 June 2020.
Labels: coronavirus, real estate, recession
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